Kroger CEO Says Chain Will Cut Prices on Thousands of Products

Kroger CEO Greg Foran said the grocery chain will reduce prices on thousands of products to increase sales growth. He made the comments in an interview published May 21. Foran compared the business to a Formula One race. He said the goal is to move from the middle of the pack to the front group of competitors.

Foran said customers are buying fewer and less expensive items. He attributed the change to higher gas prices, ongoing inflation, a war in Iran, and broader economic uncertainty. He noted that competitors including Walmart, Costco, Trader Joe's, Aldi, and Amazon have gained customers by focusing on lower costs.

Foran said the average basket size must decrease across thousands of products in a way customers view as reasonable.

Foran said Kroger will test lower prices in the coming months before expanding the changes. He said the company will fund the reductions through better supplier sourcing and more efficient technology use. Foran also said Kroger is open to acquisitions that would expand its store footprint.

U.S. and high-growth markets in Texas, the Carolinas, and parts of Florida as areas of interest. U.S. operations at Walmart from 2014 to 2019. The company reported flat annual sales of nearly $148 billion in March.